Securities Fraud: Acquittal of Hedge Fund Owner

The owner of a hedge fund was accused of raising capital for his fund through the use of fraudulent letters to investors. While several attorneys told the client that his days were numbered and that he would be convicted and serve substantial jail time, attorney Bruce Barket took the case to trial and won the man his freedom.

The case involved invested funds lost in a fraudulent scheme by a third party, mounting losses by the fund, and efforts by the hedge fund owner to acquire additional funds to recoup losses to make his clients whole. Despite his efforts, the fund failed and a number of high profile investors went the FBI, who arrested the hedge fund owner and commenced a prosecution.

The U.S. Attorneys Office pressed forward with what they and other observers believed to be a very strong case. However. Mr. Barket's strategic approach and courtroom prowess revealed numerous flaws in the prosecutor's case. Several of the victims withered under cross examination by Barket.

The jury acquitted the client of all charges.